A report by Arkansas Business indicated the city of Fayetteville is in a rush to install a large solar power project by September so it can take advantage of a retail-rate credit for the excess power added to the grid.
The new state rules on net metering will change on Oct. 1 and utility customers who install solar systems after that date will get a wholesale-rate credit, about 5 cents per kilowatt-hour as opposed to a retail average above 10 cents, reported Arkansas Business.
The reduced rate will make a big difference to homeowners, businesses and entities like cities, counties and schools because it will essentially cut their return on investment for solar systems in half.
Fayetteville’s latest solar project will be combined with two existing ones that serve the city’s two wastewater treatment plants. Entegrity will own all of them. It will also allow the city to sell all the power at a lower rathe than now charged by Southwestern Electric Power Co. of Shreveport.